A property manager is the person or company who is responsible for the day to day functioning and operating of a real estate property for a fee. The role is to ensure that the properties operate freely, sustain their appearance and retain or increase their value, which are under their care. Their job also often requires the balancing of owner expectations and managing resident which is a delicate task to perform. The property managers need to acquire some appropriate insurances to protect themselves as well as their business.
Property managers have an important role in the ecosystem as they keep the whole process of property investments running smoothly and hackle free. It doesn’t matter if the properties are owned by them or simply managed by them in behalf of others.
RISKS TO PROPERTY MANAGERS
There are lot of risks present that can affect a property manager quite severely. There are chances that there will be that one tenant who will create a ruckus and you will be faced with unplanned risk. The potential risks are mentioned below –
- Your building or the property could get damaged along with the equipments inside them.
- General liability in terms of day to day stuff and routines.
- The injuries sustained by renters or tenants will also be a liability on the property manager.
- The external and environment factors or events brings a huge liability.
- The wrongful eviction of property managers by tenants and
- Tenant discrimination.
TYPE OF INSURANCE PROPERTY MANAGER NEED TO HAVE
Insurance have become the need of today and everyone have to have some kind of insurance cover to protect various elements of their life. Property managers also need the assurance of insurance to protect their business, clients, tenants and the properties they manage. A well structure insurance policy can help you with and protect you from legal proceedings, liability claims and losses caused by fire, burglary or peril.
THE INSURANCES THAT PROPERTY MANAGERS NEED TO HAVE ARE
Errors and Omission Insurance – This insurance covers the specialized services offered by property managers, which is also termed as professional liability insurance. It protects you from claims against wrongful eviction and invasion of privacy among others of similar nature.
General Liability Insurance – It deals with the day to day business practices of any company, irrelevant to the type of industry.
Tenant Discrimination Insurance – It deals with the current, former or prospective tenants’ wrong allegations and discrimination on the property manager and is a major concern for them.
TIPS FOR CHOOSING INSURANCE OVERAGES
There are some things that you need to keep in mind before buying the insurance coverage. You have to make sure about the following things –
- The insurance coverage you will buy should be able to cover not only your property or business but also the assets present there.
- You have to make sure that the insurance coverage is not only for physical injury. It has to cover discrimination, retaliatory and unlawful discrimination, libel(a written defamation) and slander tolerated by guests.
- All the vehicles, whether it’s a car or truck should
- be covered under insurance if it has been used for the business purpose.
- The insurance is a necessity that should be followed by property managers, more so because of the rise in median house value from last year.